4 ms·

What’s wrong with being incorporated in Delaware?

• indigochill 8y ago
  Nothing, really, but some people think it's shady because Delaware has very corporate-friendly tax laws. So you'll have silly situations like a company that operates 100% in Missouri but is incorporated in Delaware to take advantage of their tax laws. Legal, but some people think it's cheesy.
  • todd8 8y ago
    Is it shady to live in Washington instead of California because of state income tax laws?
    • arthur_pryor 8y ago
      only if you just claim to live there for tax benefits, but don't actually reside in the state.
      • todd8 8y ago
        My point is that it isn’t wrong to choose a place to incorporate based on a state’s laws. Just as it isn’t wrong to choose to live in Texas because it has no income tax or California for its recreational marijuana. It’s not breaking the law to form an Alaskan corporation even though you personally spend more time in Arkansas or put your factories in Arizona. That satisfies not only the letter of the law but the intent of these laws (as I understand it not being a legal expert).